Buying and selling app supplier Robinhood was subpoenaed by U.S. securities regulators late final 12 months, in keeping with a submitting submitted by the corporate on Feb. 27.
In that submitting, Robinhood stated it obtained an investigative subpoena from the U.S. Securities and Trade Fee (SEC) regarding varied issues resembling cryptocurrency listings, crypto custody practices, and platform operations.
The corporate stated it obtained the subpoena in December 2022 following the collapse of FTX in November (and the collapse of different firms in the summertime).
Robinhood stated it may face sanctions if the SEC or any court docket determines it has not complied with securities laws. The corporate additionally stated that if its listed cryptocurrencies are decided to be securities, it may very well be prevented from supporting the buying and selling of these belongings. Moreover, Robinhood stated it may very well be pressured to pay regulatory penalties and compensation to its customers.
Robinhood made the above statements inside its 10-Okay submitting — a required annual report for publicly- and privately-traded firms. Although the submitting issues the fiscal 12 months ending in December 2022, the submitting was not submitted or publicized till right this moment.
Regardless of the SEC’s obvious involvement with Robinhood, there is no such thing as a indication that the regulator plans to take motion towards the agency instantly. The corporate stated it cooperates with all investigations in right this moment’s submitting.
The information has minimally affected the worth of firm shares, if in any respect. Robinhood inventory (HOOD) is up 1.36% right this moment however down 0.62% after hours.
